Dallas Home Appraisals News and Information

Perhaps as hard hit by the HVCC as independent fee appraisers are mortgage brokers, whose ability to provide a competitive service for clients will be greatly hampered by the provisions of the code, especially the restrictions on how appraisals must be ordered.  Many brokers look at the quick and wide acceptance of the code as an attempt by banks to push brokers out of the business, enabling the banks to limit competition and raise fees.

A recent clarification by Fannie Mae regarding under what circumstances a broker may order an appraisal gave this answer:  "The Code prohibits brokers from ordering appraisal services, but brokers may initiate the appraisal process on a lender’s behalf in accordance with arrangements made by the lender. See Q37 for details. "  Clear?  Not really. 

The National Association of Mortgage Brokers had filed suit in an effort to stop the code from going into effect, but have since dropped the suit based on a technicality.  They are still hoping to convince the powers that to grant another postponement (the code was originally supposed to go into effect on January 1).  You can follow their efforts on the NAMB website.

On the plus side for brokers and appraisers, the FHA has not signed onto the code and there will (so far) be no change in how FHA or VA appraisals may be ordered.  The only announced change in those loans is that beginning October 1, 2009, FHA appraisers will need to be certified by the state in which they appraise.

Blue Star Appraisals Inc. is committed to continuing to provide excellent service beyond reproach for our clients - lenders, brokers and individuals - regardless of where our orders come from.  Unfortunately, with the AMC's skimming their fees off the top of the appraiser's fees (instead of passing any costs on to the lenders), it is unclear how many appraisers and especially boutique companies will be able to continue to be profitable.  We would love to hear from brokers, lenders and other appraisers regarding your views, how you're dealing with the new code and how this will change the way you do business.